All Forum Posts by: Simcha Davidman

 @Tim Pagano has a great point.  A couple years ago, my parents were trying to sell their primary residence in Rockland County, NY and were having difficulty all summer long.  In the fall they took it off the market, and after speaking with a realtor, put it back on in January or February.  They got immediate interest from only serious buyers and closed in April.

To figure out how much it would rent, try googling "(the zip code) rental home" or something to that effect.  It should give you an idea.

You indicate that you would do a bunch of work if you try to flip it.  Does it need work or is it in good shape?

Right now the property is free and clear?

Try running some numbers and figuring what type of return on investment you would earn, and then show them.  Maybe you'd be able to convince one or both to stay in it with you to rent.  Also, do you know what your tax basis in the property is?  Upon sale, there may be taxes due, making their current windfall less significant.

Finally, I'm not sure how those agent contracts work, but I would hope you can terminate that relationship if you wanted to.

Good luck!

There's some sort of 2% tax cap in NJ, but it's not really firm.  You might find this an interesting read.

http://www.nj.com/politics/index.ssf/2016/02/avera...

and http://www.northjersey.com/news/property-tax-cap-g...

Enjoy!

I don't use much social media, either.  I have no idea if that's how you use it on other sites :)

Welcome, @James Chung.

Just a "quick tip."  In order to tag users, type @ and then "space" then start typing the name of the person you want to tag.

I love that you're moving in with your in-laws.  I thought about that, except that my in-laws live 175 miles away.

Good luck!

It depends how much assets you're trying to protect.  Many investors would be fine with a large liability policy, and you can even throw an umbrella on top of that.  Just make sure with your broker you know whether the umbrella is in addition to the underlying limit or its limit is less the underlying limit.  This obviously only addresses third party liability, and not recourse a lender might have.

Two potential issues with LLCs are (1) how easy/difficult it would be to move the property into an LLC. My impression (not from experience, but second hand) is that if there's a mortgage is in your name, the mortgagee will not be too keen on you trying to swap it. I know my bank gave me a hard time when I was only trying to remove my name's wife from it while refinancing; and (2) whether the LLC will help. You'd need to talk to a lawyer about what you have to do, but there's always the possibility of a plaintiff piercing the corporate veil, depending on circumstances.

@Raphael Thomas might be able to point you in the right direction.  Good luck!

@Rich Lopes Is your expectation for more appreciation?  If not, then your annual returns will be dragged down the longer you hold it.  Not lose money, of course, but less gain.  You're already sitting on a gain of over 60%.  The longer you hold it, the less valuable that gain becomes.

Either way, I think having that large of an asset it pretty cool, so good luck with it!

Thanks @Matt M. Is it standard that hard money is non-recourse?

Thanks, @Arlen Chou.